Puravankara Limited , a prominent real estate developer, has reported a significant increase in its consolidated net loss for the second quarter of fiscal year 2026, despite showing growth in revenue. The company's financial results for Q2 FY26 reveal a complex picture of its current market position and operational performance.

Financial Highlights

• Net Loss: Puravankara's consolidated net loss widened to ₹430.00 million in Q2 FY26, compared to a loss of ₹171.00 million in the same period last year.
• Revenue: The company's revenue increased to ₹6.44 billion, up from ₹4.95 billion year-over-year, marking a growth of approximately 30%.
• EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) declined to ₹1.04 billion from ₹1.12 billion in the previous year.
• EBITDA Margin: The EBITDA margin compressed to 16.15% from 22.60% in the corresponding quarter last year.

Operational Performance

The increase in revenue suggests that Puravankara has been successful in driving sales and project completions. However, the widened net loss indicates that the company is facing challenges in managing its costs and maintaining profitability.

Market Dynamics

The real estate sector in India has been showing signs of buoyancy, with both sales and launches surpassing the 200,000-unit mark over the January to September period (Q4 FY25 – Q2 FY26). This positive trend in the broader market contrasts with Puravankara's financial performance, suggesting company-specific factors at play.

Profitability Concerns

The compression in EBITDA margin from 22.60% to 16.15% is a significant concern. This decline in profitability could be attributed to various factors such as increased input costs, higher marketing expenses, or changes in the product mix.

Debt and Financial Position

As of September 30, 2025, Puravankara's net debt stood at ₹2,894.00 crore. The company reports a projected surplus of ₹15,568.00 crore, which is more than 5 times its net debt, indicating strong cash flow visibility and financial stability.

Future Outlook

Despite the current challenges, Puravankara has been actively expanding its development pipeline. In the first half of FY26, the company added over 6.36 million sq. ft. of potential developable area with an estimated Gross Development Value (GDV) of ₹9,100.00 crore. This includes strategic partnerships and redevelopment projects in key markets like Mumbai and Bengaluru.

Management Commentary

Ashish Puravankara, Managing Director of Puravankara Limited, commented on the results: "In Q2FY26, we sustained strong growth momentum driven entirely by sustenance sales, achieving pre-sales of ₹1,322.00 crores and collections of ₹1,047.00 crores, both increasing year on year."

He also highlighted the company's future plans, stating, "We are poised to accelerate our launch pipeline of 12.67 million sq. ft over the next 3 quarters, including a landmark project in Bengaluru spanning 3.48 million sq. ft at KIADB Hardware Park and a redevelopment project in Andheri Lokhandwala, both scheduled for launch in January 2026."

Conclusion

While Puravankara faces short-term profitability challenges, its revenue growth and robust project pipeline suggest potential for future improvement. Investors and market watchers will be keenly observing how the company manages to balance its growth initiatives with profitability in the coming quarters.

Puravankara Limited , a prominent real estate developer, has taken a significant financial step by providing a corporate guarantee of Rs 360.00 crores for its wholly owned subsidiary, Grand Hills Developments Private Limited. This move is in support of a debenture issue by the subsidiary, as disclosed in a recent corporate filing.

Key Details of the Corporate Guarantee

Implications and Impact

Puravankara Limited has clarified that this corporate guarantee represents a contingent liability for the company. As Grand Hills Developments is a wholly owned subsidiary and part of the consolidated group, the company states that there is currently no direct impact on its financial position.

Regulatory Compliance

The corporate guarantee has been disclosed in compliance with Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure ensures transparency and keeps investors informed about significant financial commitments made by the company.

Absence of Promoter Interest

It's noteworthy that Puravankara has explicitly stated that neither the promoter, promoter group, nor any group companies have any interest in this transaction. This clarification helps in maintaining transparency about the nature of the deal and its arm's length status.

This corporate action by Puravankara Limited demonstrates the company's support for its subsidiary's financial initiatives. While the guarantee doesn't immediately affect Puravankara's financials, it does represent a potential future obligation that investors and stakeholders should be aware of.